Reuters logo
China shares gain 3.8 pct after holiday; HK up 0.17 pct
October 9, 2009 / 5:27 AM / 8 years ago

China shares gain 3.8 pct after holiday; HK up 0.17 pct

 * Shanghai market advances after eight-day holiday
 * Wynn Macau posts gains on debut  (Updates to midday)
 HONG KONG/SHANGHAI, Oct 9 (Reuters) - China's key stock index .SSCE was up 3.84 percent on Friday, led by banking shares, as the market played catch-up following a strong global rally during Chibna's eight-day National Day holiday.
 In Hong Kong, shares rose 0.17 percent, below gains in recent sessions, as some investors took profit.
 The Shanghai Composite Index .SSEC rose to 2,886.204 points, with all 893 stocks posting gains.
 PetroChina (601857.SS), the index's most heavily weighted stock, rose 2.68 percent to 13.04 yuan after large-cap shares underperformed the market in the run-up to the holiday break.
 Top lender Industrial and Commercial Bank of China (601398.SS) was up 1.89 percent at 4.86 yuan, while the biggest housing mortgage lender, Construction Bank of China (601939.SS), added 2.69 percent to 5.73 yuan.
 Overall trading activity staged a measured recovery from sluggish volumes seen before the holiday. Turnover of Shanghai A shares rose to 51 billion yuan ($7.5 billion) on Friday morning from 37 billion yuan on the morning of Sept. 30.
 China's markets were closed from Oct. 1 to Oct. 8.
 The Shanghai market is expected to be supported by fresh signs of economic recovery in China when the government announces key September economic data next week, but it remains under pressure from large supplies of new shares, among other negative factors.
 "I don't expect the market to enter a bull run amid a heavy new supplies of shares and a slowdown in the growth of new bank loans," said senior stock analyst Ren Chengde at Galaxy Securities in Shanghai.
 Friday's rally allowed the benchmark index to recapture its 125-day, or half-year, moving average, now at 2,869 points, but analysts said investor sentiment still needed time to recover.
 The index lost 6 percent in the third quarter, marking its worst quarterly performance this year as sentiment was depressed by supplies of new shares including initial public offerings on China's planned Nasdaq-style second board, ChiNext.
 State media said on Friday that a third batch of companies to be listed on ChiNext had received regulatory approval and aimed to raise a combined total of about 2.15 billion yuan ($315 million).
 The offerings will be priced on Oct. 13 and take subscriptions on Oct. 15.
 Shares in Hong Kong rose at slower pace on Friday, after gaining 5.5 percent in the last four sessions, as some investors took profit on stocks that posted sharp gains, including HSBC (0005.HK) and Chinese gold miners.
 "The market has already rebounded more than 1,000 points in a very short period of time, so there is bound to be some profit-taking pressure," said Ben Kwong, chief operating officer at KGI Asia. Debutant Wynn Macau (1128.HK), the Asia unit of U.S. casino giant Wynn Resorts (WYNN.O), rose 8.5 percent, signalling that appetite for gambling stocks remained strong. [ID:nHKG18196]
 Sharp gains on shares that debuted in Hong Kong on Thursday, including infant formula maker Ausnutria Dairy Corp (1717.HK), also helped Wynn Macau's rise. Ausnutria closed up 27.5 percent in the previous session.
 The benchmark Hang Seng Index .HSI rose 35.79 points to 21,528.69 at the midday break. Turnover was HK$33.9 billion ($4.4 billion, up from  HK$31.1 billion on Thursday.
 COSCO Pacific (1199.HK) rose 1.57 percent. The port operator forecast container throughput in China's ports to rise 5 to 10 percent in 2010, the South China Morning Post said on Friday.
 HSBC (0005.HK) fell 0.5 percent, reversing Thursday's 1.83 percent gain.
 Hunan Nonferrous Metals Corp Ltd 2626.HK slid 1.32 percent. The company is investigating an incident in which two falling mine cages killed 26 people and injured five at one of the company's mines on Oct. 8.
 China Shipping Development (1138.HK) extended gains on higher freight costs, rising 2.92 percent.
 China's goldminers slipped as gold eased from record highs. Realgold Mining (0246.HK) fell 1.65 percent, while Lingbao Gold (3330.HK) dropped 1.28 percent.
 The China Enterprises Index of top locally listed mainland Chinese companies was up 0.67 percent at 12,539.28, led by a 3.32 percent gain in cement maker Anhui Conch (0914.HK).  (Editing by Chris Lewis)     

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below